May 25, 2021
The average age of U.S. cars and light trucks is increasing, which means good results for repair shops. As of mid-2019, the average U.S. passenger car had driven about 22,000 more miles on average than it did ten years ago, according to Lang Aftermarket’s 2021 annual report. In 2019, cars drove an average of 123,000 miles, and trucks drove an average of 125,000 miles. The organization expects those numbers to increase by about 3,000 miles in 2020 and show no signs of slowing down, especially given that COVID-19 is expected to impact all consumer purchasing habits.
The explanation for why it helps repair shops is simple, says Jim Lang, president of Lang Marketing. The longer cars stay on the road, the more likely they will use the products as the car continues to age, and not all miles traveled are the same. The first mile for a new car requires less work than a mile for a 100,000-mile car. As the cars wear out, this will lead to more frequent repairs, which means extra work for repair shops.
Lang sees the reason for this growth, and probably the continued growth, for several reasons. “A 10-year-old car that goes 10,000 miles doesn’t produce as much output as a 12-year-old car that goes 10,000 miles,” Lang said, “because these cars stay on the road longer, every mile they drive generates larger aftermarket volume compared to younger cars.” This often also results in a different cycle of products, such as an extra starter for the vehicle’s life or an extra set of brake pads, which would not have happened if the vehicle had been taken off the road earlier.
First, automotive technology continues to evolve, and innovation keeps cars on the road longer. In addition, cars do not change their style from year to year, as in past decades. According to Lang, the cycle lengthens every three to four years. Secondly, this is the current market.
The purchase price of new cars continues to rise outside the average consumer price range. Car sales also dropped significantly in 2020, Lang said. For this reason, Lang forecasts record mileage figures in 2021 and 2022 as fewer and fewer new cars hit the roads.
Another interesting trend that Lang thinks stores should be aware of is the growing gap between domestic and foreign nameplates on the road. First, repair shops need to keep abreast of changing technology in foreign models as they become an increasing proportion of vehicles on the road. According to Lang’s research, foreign nameplates account for over 50% of new sales, meaning that the average mileage of foreign nameplates will continue to decline.
The priority will be to pass the certification from foreign manufacturers. “Demand for repairing foreign tags will grow,” Lang said. “Repair operators need to be aware of this and have the tools and knowledge to repair these foreign tags and domestic tags.” Second, this means domestic vehicles will most often be the vehicles coming in for an additional cycle of products as the odometer levels continue to rise.”